The invention relates to a Sepia lycidas fry breeding method, belonging to the field of aquatic fry breeding. The method specifically comprises the following five steps of: fishing of parents, temporary culture of the parents, acquisition of eggs, hatching of the eggs and breeding of fries, wherein sexually mature parent Sepia lycidas are selected and put into a water pond, temperature, salinity and stocking density are controlled, the water quality is kept and alive small fish and shrimps are fed for temporary culture; the parents with eggs are put into egg laying ponds in proportion and fertilized eggs are collected periodically; the eggs of the same batch are put into a hatching pond for hatching; embryos to be hatched soon are collected and put into breeding ponds, the area of each breeding pond is 10-15 square meters, the water temperature is 20-30DEG C, the seawater salinity is 25-35, the stocking density is 200-400 fries per square meter, and the fries are fed for the first time after 6-12 hours from the time when the fries are hatched and get out of embryonic membranes; and after the mantle length of the fries is more than 1.5cm, the fry breeding process is completed and the fries are moved out. The breeding method has the advantages of high survival rate, few diseases, rapid growth, easiness in operation and high success rate, and is suitable for large-scale breeding.